CONSTRUCTION SPENDING STUMBLES AGAIN IN MAY; STIMULUS PROVIDES ONLY BRIGHT SPOT FOR NONRESIDENTIAL

Construction spending shrank again in May, dropping 8 percent from a year earlier, although homebuilding and stimulus-funded public works increased from year-ago levels, according to an analysis of new Census Bureau data by the Associated General Contractors of America. "Stimulus has made a difference, but Congress needs to provide long-term funding for transportation and water projects to assure further economic growth," Ken Simonson, chief economist for the construction trade association, said.

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